$10M NNN Acquisition Denver | Commercial Lending Solutions 
Loan Size Example

$10 Million NNN Acquisition in Denver

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $10 million NNN acquisition in Denver represents a bread-and-butter deal for most institutional lenders with single-tenant net lease platforms. Denver's submarket depth, strong tenant demand for Class A retail and restaurant space, and stable property fundamentals make these deals attractive to national banks, life companies, and CMBS conduits alike. Leverage typically ranges from 65 to 75 percent LTV depending on tenant credit, lease term, and sponsor profile. Rates in this size range are running 6.0 to 6.5 percent on a fixed basis, with CMT-based floating programs offering spreads of 225 to 275 basis points for institutional borrowers.

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Capital Stack

What a $10M NNN Acquisition Capital Stack Looks Like

National banks with established STNL platforms dominate the $10 million segment in Denver, often competing directly with credit unions and life insurance companies for investment-grade tenant credits. Lender selection typically hinges on tenant credit rating, remaining lease term, property location, and whether the borrower seeks fixed-rate certainty or floating-rate flexibility. Sponsors pursuing 1031 exchanges often favor banks that can deliver certainty of execution and flexible prepayment terms.

Capital Source Rate / Cost Size / LTV Notes
National bank with STNL program 6.0 to 6.5 percent fixed, or CMT plus 225 to 275 basis points floating 6.5 to 7.5 million at 65 to 75 percent LTV Dominant source for investment-grade tenants (A- credit or better); recourse or limited recourse available; 10-year amortization typical; prepayment penalty generally declining 1 percent per year
Life insurance company 6.1 to 6.4 percent fixed 5.0 to 7.0 million at 60 to 70 percent LTV Favors longer lease terms (8 to 15 years remaining); full or limited recourse; slower underwriting and closing (90 to 120 days); excellent hold-to-maturity certainty
CMBS conduit lender 6.2 to 6.6 percent fixed 6.0 to 7.5 million at 65 to 70 percent LTV Non-recourse structure; 10-year amortization, 25 to 30-year term; competitive for multi-tenant portfolios or single strong credit; seasoning period post-close required for refinance flexibility
Credit union or portfolio lender 6.1 to 6.5 percent fixed 4.0 to 6.0 million at 60 to 70 percent LTV Faster closing (30 to 60 days); relationship-driven underwriting; recourse standard; ideal for local sponsors or sponsors with prior relationship depth

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Sponsor Profile

Who Closes a $10M NNN Acquisition Deal

Typical sponsors for $10 million NNN acquisitions in Denver range from established single-property operators ($50 million to $150 million net worth) to emerging DST facilitators and 1031 exchange funds. Many sponsors are refinancing maturing debt or consolidating smaller holdings into a single institutional-grade acquisition. Experience level typically includes 3 to 8 completed net lease transactions, with a clear preference for credit-quality tenants and predictable cash flow over value-add complexity.

From the CLS CRE Pipeline

A Real $10M Example

A Colorado-based sponsor recently acquired a $9.8 million, triple-net structured investment property leased to a national coffee franchise in the Cherry Creek submarket. The property was financed at 68 percent LTV with a regional bank at 6.23 percent fixed over a 10-year amortization and 25-year term, with 1 percent annual declining prepayment penalties. The tenant carried an investment-grade credit rating with 6.7 years remaining on the initial lease, giving the lender strong comfort on NOI stability. Closing occurred in 67 days, and the sponsor achieved a stabilized 4.8 percent cash-on-cash return with long-term hold certainty.

Anonymized. All deal references protect borrower and lender identity.

FAQ

$10M NNN Acquisition Denver FAQ

Lenders typically provide $6.5 to $7.5 million in financing at 65 to 75 percent LTV for single-tenant acquisitions with investment-grade tenants and mid-to-long lease terms. LTV floors drop to 60 to 65 percent if the tenant credit is speculative-grade or the lease has fewer than 5 years remaining. The specific LTV is driven heavily by tenant credit rating and lease expiration date.
Yes, CMBS conduits routinely offer non-recourse structures at 65 to 70 percent LTV, with standard 10-year amortization and 25 to 30-year terms. Banks and life companies typically require full or limited recourse, though some banks will offer partial non-recourse (recourse limited to cash flow or lease guarantees) at slightly higher rates or lower LTV. Non-recourse always carries longer closing timelines and more rigorous underwriting.
Fixed-rate financing is running 6.0 to 6.5 percent for institutional-grade credits on 10-year amortization. Floating-rate options (CMT plus 225 to 275 basis points) appeal to sponsors comfortable with rate volatility or expecting eventual payoff through refinance or sale. Rate depends on tenant credit, lease length, lender type, and whether the borrower has prior relationship with the lender.
Bank closings typically range from 45 to 75 days with straightforward underwriting. Life companies move more deliberately, often requiring 90 to 120 days due to deeper due diligence and committee review. CMBS conduit timelines are 75 to 100 days and include third-party appraisal, environmental review, and loan committee approval. A strong sponsor track record and clean property profile can accelerate timelines by 2 to 3 weeks.
1031 exchange buyers are viewed favorably by most lenders because they signal institutional-quality demand and lower prepayment risk. Some lenders offer slightly more flexible prepayment terms or faster closing to accommodate the 45-day identification and 180-day closing windows mandated by the IRS. Sponsors should disclose 1031 exchange status upfront to maximize lender competition and execution certainty.


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